Earnings (Loss) Per Share/Unit

12 Months Ended

Dec. 31, 2012

NOTE 21 - EARNINGS (LOSS) PER SHARE/UNIT

We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested time-based restricted stock awards and for our common stock. Our non-vested time-based restricted stock awards contain nonforfeitable rights to dividends and are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested time-based restricted stock awards do not have such an obligation so they are not allocated losses.

At December 31, 2012 and 2011, we had 893,000 and 940,000 stock options outstanding, respectively, which were not included in the computation of diluted earnings per share, as the options’ exercise price was greater than the average market price of our common shares.

In 2012 and 2011, our basic and diluted earnings per share are based on basic weighted average common shares outstanding due to our loss from continuing operations.

Summit Hotel Properties, Inc.

Below is a summary of the components used to calculate basic and diluted earnings per share (in thousands, except per share):

	2012			2011
Numerator:
Income (loss) from continuing operations	$	(3,627	)	$	(5,106	)
Less: Preferred dividends		4,625			411
Allocation to participating securities		37			-
Attributable to noncontrolling interest		(1,429	)		(1,491	)
Income (loss) attributable to common shareholders
from continuing operations		(6,860	)		(4,026	)
Income (loss) attributable to common shareholders
from discontinued operations		1,122			678

Net income (loss) attributable to common shareholders	$	(5,738	)	$	(3,348	)

Denominator:
Weighted average common shares outstanding - basic		33,717			27,278
Dilutive effect of equity-based compensation awards		132			-

Weighted average common shares outstanding - diluted		33,849			27,278

Earnings per common share - basic and diluted:
Net income (loss) attributable to common shareholders
from continuing operations	$	(0.20	)	$	(0.15	)
Net income (loss) attributable to common shareholders
from discontinued operations		0.03			0.03

Net income (loss) attributable to common shareholders	$	(0.17	)	$	(0.12	)

Summit Hotel OP, LP

Below is a summary of the components used to calculate basic and diluted earnings per unit (in thousands, except per unit):

	2012			2011
Numerator:
Income (loss) from continuing operations	$	(3,627	)	$	(5,106	)
Less preferred dividends		4,625			411
Income (loss) attributable to common unitholders
from continuing operations		(8,252	)		(5,517	)
Income (loss) attributable to common unitholders
from discontinued operations		1,357			929

Net income (loss) attributable to common unitholders	$	(6,895	)	$	(4,588	)

Denominator:
Weighted average common units outstanding - basic		40,780			37,378
Dilutive effect of equity-based compensation awards		132			-

Weighted average common units outstanding - diluted		40,912			37,378

Earnings per common unit - basic and diluted:
Net income (loss) attributable to common unitholders
from continuing operations	$	(0.20	)	$	(0.15	)
Net income (loss) attributable to common unitholders
from discontinued operations		0.03			0.03

Net income (loss) attributable to common unitholders	$	(0.17	)	$	(0.12	)

- Definition

The entire disclosure for earnings per share.

+ References+ Details